(Bloomberg) — ServiceNow Inc.’s $2.85 billion planned acquisition of artificial intelligence firm Moveworks Inc. is facing an in-depth antitrust review by the US Justice Department.
The companies have received a so-called second request, which means the government is seeking additional information on the proposed takeover, according to people familiar with the matter who asked not to be identified because the matter isn’t public. The firms will have to respond to the request from antitrust officials before the deal could move forward.
The Justice Department opened the in-depth probe in June, the people said. While only a small portion of deals face such follow-up requests, they can lengthen the regulatory approval process for takeovers by months, or more than a year. If antitrust officials find evidence of anticompetitive effects, they could decide to file a lawsuit asking a judge to block the deal.
ServiceNow, which offers software designed to automate information technology and human resources operations, declined to comment. The Justice Department also declined to comment. Moveworks didn’t respond to requests for comment.
Announced in March, the acquisition would help ServiceNow expand its use of AI for the HR and IT services it provides to companies.
Led by Chief Executive Officer Bill McDermott, ServiceNow makes applications that help firms organize and automate their personnel and IT operations. Like many of its peers, the Santa Clara, California-based company has been incorporating generative AI features into its products.
Created in 2016, Moveworks provides companies with AI assistants to deal with employee requests. Its technology is used by companies including Unilever Plc, GitHub Inc. and Broadcom Inc., according to its website. Moveworks has received backing from investors including Kleiner Perkins, Lightspeed Venture Partners, Bain Capital Ventures, Alkeon Capital Management and Iconiq Growth. The company was valued at $2.1 billion in a 2021 funding round.
The majority of Moveworks’ customer deployments already use ServiceNow, the company has said. Initial integration between the companies will focus on offering an AI-powered self-service tool for customers.
The emergence of AI-first applications has fueled anxiety among incumbent software makers. Firms including ServiceNow, Microsoft Corp. and Salesforce Inc. are racing to implement AI features throughout their platforms. Many have leaned on acquisitions or partnerships with younger firms to bolster their capabilities.
Both ServiceNow and Moveworks focus on making it easier for employees to navigate internal systems — whether that be requesting a new work laptop or parsing HR policies. Each company is pursuing a vision where more of these workflows could be completed by AI models acting on behalf of users.
ServiceNow said in March that it expected the deal to close in the second half of 2025.
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